Is The Bible Right About Central Banks? (Part 1)

Let’s assume you don’t believe in God. You simply recognize the Bible as a history book, beginning with the origins of the Jewish nation. Let’s also assume you’ve seen the 1956 Charlton Heston movie, The Ten Commandments. Now we’re good to go.

Sometime after Moses came down from the mountain, God gave Moses these rules: “Do not use dishonest standards when measuring length, weight, or volume. Your scales and weights must be accurate. Your containers for measuring dry materials or liquids must be accurate.”[1] Later Moses transcribed this directive: “You must use accurate scales when you weigh out merchandise, and you must use full and honest measures. Yes, always use honest weights and measures, so that you may enjoy a long life in the land the LORD your God is giving you. All who cheat with dishonest weights and measures are detestable to the LORD your God.”[2]

Why was it important this new nation have accurate weights and measures? This dealt with trade and commerce.

According to NOVA, the earliest form of metal money occurred in China around 1000 B.C. [3] It’s estimated Moses wrote these rules in 1445 B.C.[4] In that period, weights and measures were essential for business. This command was about trade and commerce.

Fast forward to 1787, when the U.S. Constitution was signed, Article 1, Section 8 of the Constitution empowers Congress to “fix the Standard of Weights and Measures.”[5] The concept of accurate weights and measures is important in every culture. Why?

Every culture rests on a three-legged stool: Faith, Family, and Money.[6] I’m going to let others explain the faith and family legs. The money leg is the means of exchange. Robinson Crusoe didn’t have to worry about this. But once other people are added, a means of exchange becomes important. Ruin the people’s money, and we have, for example, [Venezuela], [Zimbabwe], and the [Weimar Republic] (Germany).

So back to the beginning of the Jewish nation, it wasn’t just Moses who reported issues with weights and measure. Eventually, seven different authors, spanning over two hundred years, kept hammering this point. This nation was inclined to move away from God’s command. One leader wrote, “You measure out grain with dishonest measures and cheat the buyer with dishonest scales. And you mix the grain you sell with chaff swept from the floor…” Another wrote, “What shall I say about the homes of the wicked filled with treasures gained by cheating? What about the disgusting practice of measuring out grain with dishonest measures? How can I tolerate your merchants who use dishonest scales and weights? The rich among you have become wealthy through extortion and violence. Your citizens are so used to lying that their tongues can no longer tell the truth. Therefore, I will wound you…And though you try to save your money, it will come to nothing in the end.”[7]

Though this is a historical fact about the Nation of Israel, nearly every government has had the same problem. [Ancient Greece] destroyed its money. So did the [Romans]. Excluding Chinese paper currencies, there are 609 currencies no longer in use. At least 153 were destroyed by hyperinflation.[7b] Governments are good at maintaining fixed standards of weights and measure for everything, except money. That should be perplexing.

You may get whiplash, but let’s leave 1400 B.C. and move to 2017 A.D. Here are the weights and measures Congress is supposed to keep standard:

12 inches = 1 foot

3 feet = 1 yard

1 cubic yard = 27 cubic feet

16 ounces = 1 pound

32,000 ounces = 1 ton

You get the idea. The above measurements are fixed units. They give our culture a basis for operations and trade. Imagine watching a football game where they kept changing the definition of a yard. Or imagine playing Monopoly with your kids or grandkids and every time you want to buy a property, they make up a new sale price. You’d give up. If a contractor began his day by changing the length of an inch, you wouldn’t want to live in that house. There is a reason why we have rules and why we have standard measurements.

So, in the United States, what is the standard measurement for our money?

This isn’t rocket science. This is simply a topic few consider. The dollar is supposed to be a standard of measurement. Our Founding Fathers thought they had ensured it would be a fixed unit.[8]

Now I’ll fast forward. I believe central banks, here in the U.S., the Federal Reserve, are doing something they know is wrong. Every second of every day, they are arbitrarily changing what is supposed to be a fixed unit of measure. Did I lose you? How do I know they know it is wrong?

In 2002, Ben Bernanke said, “Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply.”[9] In 2013, Andrew Huszar, former Federal Reserve Official, wrote, “I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.”[10]

After hours, if I went into the Bureau Of Engraving And Printing,[11] and printed sheets of currency and trimmed them out, I’d be arrested. Even though they would be real, printed on the right paper with the right ink, it’s wrong for me to do it. But when the Federal Reserve does it, there are no rules—any amount is fine. As a private banking cartel, not connected to our government, why does the Fed get to print money but I can’t?

In reality, the Fed just adds zeros to an Excel spreadsheet…today it’s all electronic digits. In the above chart, the Fed grew our money supply by a factor of 5, without cost. It’s like magic.

Whether it’s paper or an electronic digit, this is called fiat money. It is money by fiat or decree. The money has no value without that decree. Historically, this type of money has ALWAYS failed. It eventually dies. After experiencing much pain, the people finally reject the fiat and won’t use the fake money. (For a history of money: [Hidden Secrets of Money, When Money Is Corrupted]. For a history of U.S. Currency, [click here].)

So is the Bible right about central banks? Even though this article assumes the Bible is simply a history book, is this a principle laid out which is at the very foundation of a healthy and stable culture? In the span of the Old Testament, we know seven different writers, covering more than 200 years, had to deal with this; seemingly, over-and-over again. We know from other history books, every major government which destroyed themselves, had a problem with creating uncontrolled quantities of fiat money. In our modern times, during our lifetime, we see the consequence of the money leg being kicked out of the three-legged culture stool. We see our government has abandoned the concept of a fixed unit of measurement for our money. Am I missing something? Is there ANY evidence this isn’t a problem?

If we were to change our assumption, and assume God does exist, then it would seem He knew man would be inclined to fudge on the units of measure. It would appear He knew cheating at trade and commerce would ultimately ruin a culture and result in chaos. If God exists and He warned the Jews not to go down this road in 1445 B.C., then He’s pretty smart! That makes us, pretty dumb.

“Dollar” Bill is a real guy, with real knowledge on our nation’s financial calamity, and real solutions for what must be done to dig ourselves out of the hole we are in. Due to his career, Bill must remain “disguised” to protect his position. “Bill” loves America, sees the impending cliff we are all headed towards, and hopes that by sharing his inside knowledge of the failed monetary policy in our nation, that a fiscal “nuclear” event can be minimized.